Leveraged Bear Natural Gas ETF Sees Major Profit Taking Outflows

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January 9, 2017 12:14pm NYSE:DGAZ

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Analyst Paul Weisbruch of Street One Financial in his daily fund flows update points out money coming out of gold-focused funds, as well as some developments in the natural gas and bond spaces.


There has been some position trimming in Gold involved ETFs such as GLD (SPDR Gold), -$350 million) and in the Miners space via NUGT (Direxion Daily Gold Miners Bull 3X), -$140 million out) in the past session or two on strength in the underlying Metal.

In other flows, we saw some larger outflows in Natural Gas linked DGAZ (VelocityShares 3X Inverse Natural Gas ETN) which amounts to about $200 million lately. Even with colder temperatures in parts of the U.S. such as the Northeast, Natural Gas prices have sunk to their lowest levels since November 2016 and it looks like some bearish players in the space are taking some profits here in liquidating DGAZ.

VelocityShares 3X Inverse Natural Gas ETN (NYSE:DGAZ) was trading at $4.80 per share on Monday morning, up $0.53 (+12.41%). Year-to-date, DGAZ has gained 58.42%, versus a 1.46% rise in the benchmark S&P 500 index during the same period.

DGAZ currently has an ETF Daily News SMART Grade of F (Strong Sell), and is ranked #15 of 30 ETFs in the Inverse Commodities ETFs category.

In Fixed Income activity, we once again saw upside call interest in TLT (iShares 20+ Year Treasury Bond) late last week involving the February 130 calls and we note that TLT has rallied back to mid-November levels after spending much of December at new multi-year lows.

iShares Barclays 20+ Yr Treas.Bond (ETF) (NASDAQ:TLT) was trading at $121.62 per share on Monday morning, up $0.76 (+0.63%). Year-to-date, TLT has gained 2.09%, versus a 1.47% rise in the benchmark S&P 500 index during the same period.

TLT currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #18 of 27 ETFs in the Government Bonds ETFs category.


Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.


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